Real Estate Outlook 2024: Property rates projected to increase up to 15% but demand to remain steady
₹6,105 per sq. ft. in Q3 2022 to nearly ₹6,800 per sq.
ft. in Q3 2023. “As trends indicate, the security associated with owning a physical asset during a coronavirus-like crisis coupled with a rising aversion to high-risk investments has given rise to increased demand for residential real estate buy over rent.
Additionally, many tenants now see rent as an expense and are thus considering EMIs as SIPs to build non-volatile assets such as real estate. This general homebuying sentiment is also guided by relatively cheaper home loan interest rates, which currently average between 8.75% and 9.5%," Anuj Puri, Chairman at ANAROCK Group told Livemint. With the prevailing enthusiasm for homeownership, the demand for affordable properties is expected to soar further.
More individuals seeking to move away from rental accommodations will drive the quest for spacious 2BHK and 2BHK+ homes, Shori added. Despite potential property price corrections, the pursuit of homeownership will stay buoyant as consumers will maintain unwavering confidence in real estate as the optimal asset class. Simultaneously, the luxury housing segment will also witness exceptional demand as High Net Worth Individuals (HNIs) and Non-Resident Indians (NRIs) are eyeing larger and more sophisticated assets within India, capitalising on the rupee's decline to record lows.
Their preferences lean towards technology-integrated 3BHK, 3BHK+, and 4BHK homes featuring bespoke elements and extravagant amenities. Additionally, this segment remains resilient to market upheavals and global aftershocks, helping it move towards a new phase of expansion. Tier-1 cities like Mumbai, Delhi, Noida, Bangalore, Hyderabad, Gurgaon, and Chennai are poised for a surge in residential
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